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  • 21 AUG 2007

    The Long, Long List of Closed Mortgage Companies

    A post by Chris Beauchamp as Industries, Mortgage

    Everyone sees these headlines every day about what’s going on in the mortgage industry, and it seems that each day another mortgage company is closing its doors, being acquired, or laying-off employees.

    We all know the industry is facing monumental changes right now. And if you still need a reminder of how dramatic these events are, just take a look of this long, long list of companies that have recently closed, merged or had to do massive layoffs.

    1st National – Arizona-based Alt-A wholesale lender cuts 212 employees
    Aegis Funding – closed, seeking bankruptcy protection
    Accredited – buyout from Lone Star in jeopardy
    ACC Capital Holdings – mass layoffs at parent of Ameriquest
    Acoustic Home Loans – closed subprime wholesale lender
    ACT Mortgage Capital – suspended all submissions/fundings until further notice
    Alliance Bancorp – closed
    Alterna Mortgage – closed
    Alternative Financing Corp. – wholesale division closed
    American Home Mortgage – closed
    Ameriquest – laid off 3,800, closed 229 retail branches after $325 million settlement
    Amstar Mortgage Corp. – most of staff at corp. headquarters in Houston being laid off
    Argent – for sale
    Aurora Loan Services – layoffs at this Lehman Brothers lender
    Axix Mortgage – closed
    Bank of America – Countrywide merger possibility, continued layoffs
    Bear Stearns – closed two hedge funds after huge subprime losses, 240 subprime layoffs
    Blackstone Group – buying PHH Mortgage
    BNC Mortgage LLC – layoffs, consolidated with Aurora Loan Services
    Broad Street Mortgage – sold to Wausau Mortgage Corp.
    Calusa Investments – website down, thought to be closed
    Capital One Mortgage – 2,000 layoffs planned nationwide
    Central Pacific Mortgage – closed, TMSF cancels deal to acquire company
    Charter Funding – believed to be closed by parent First Magnus Financial
    Chevy Chase – cuts correspondent channel
    Choice Capital Funding – rumored to be closed
    CIT Group Inc. – exiting residential mortgage lending
    Citadel – buying ResMAE
    Citigroup – bought ABN AMRO Mortgage Group, mulling acquisition of Argent Mortgage
    Clear Choice Financial – in default, Bankruptcy possible
    CMXL – acquires All Fund
    Columbia Home Loans – subprime lender closed
    Concorde Acceptance – rumored to be closed
    CoreStar Financial Group – closed
    Countrywide – layoffs in subprime , may be bought out by Bank of America
    Dana Capital – closed
    DB Home Lending – rumors are stirring
    DeepGreen Financial – closed
    Decision One – closed six regional centers
    Deutsche Bank Correspondent Lending Group – consolidating business to MortgageIT
    Ditech – 181 layoffs
    Dollar Mortgage Corp. – being acquired by Shearson Financial Network
    Domestic Bank – shutting down wholesale unit
    E-loan – closed sub-prime wholesale division
    ECC Capital/Encore Credit – sold to Bear Stearns, 100 layoffs announced Aug. 17
    Entrust Mortgage – closed
    Equibanc – closed by Wachovia
    Express Capital Lending – not accepting new submissions until further notice
    Fannie Mae – hundreds of layoffs coming
    FBR – selling subprime unit
    Fieldstone Mortgage – closed Las Vegas branch
    First Community Bancorp – layoffs
    First Consolidated Mortgage Co. – subprime wholesaler shutting down, in dispute
    First Indiana Wholesale – closed wholesale consumer lending operations
    First Magnus – no longer funding or originating any mortgage loans
    First NLC Financial Services LLC – 645 layoffs
    First Source Funding Group – closed
    First Street Financial – closed
    Flexpoint Funding – reportedly closed wholesale division
    Flick Mortgage – closed
    FMF Capital LLC – closed
    Freestand Financial – closed
    Fremont General – exited secondary sub-prime market
    FundingAmerica – not accepting any new business
    General Electric – buying PHH Corporation
    Golden Empire Mortgage (GEM Capital) – closed
    Great Southwest Mortgage – believed to be closed by parent First Magnus Financial
    Greenpoint Mortgage – closed, 1900 employees laid off, 31 branches closed
    Guaranty Residential – layoffs
    H&R Block Mortgage Corp. – layoffs
    Heartwell Mortgage – closed
    Heritage Plaza Mortgage – closed
    HMIC – closed
    Home 123 Mortgage – closed
    HomeBanc Mortgage Corp. – closed
    Home Capital Inc. – closes
    Home Equity of America – layoffs
    Homefield Financial – closed
    Homeland Capital Group – subprime wholesaler closed
    Home Loan Center Inc. / Lending Tree – layoffs
    Homeview Lending Inc. – layoffs, now appears to be closed
    HSBC Mortgage Services (Correspondent division) – closed, layoffs
    Huntington Financial – to be acquired by Oxford Funding
    Impac Mortgage Holdings – layoffs, halted Alt-A loan production
    Indymac – bought retail arm of New York Mortgage Trust, layoffs
    Innovative Mortgage Capital – closed
    Investaid Corp. – suspended operations indefinitely
    Ivanhoe Mortgage – closed
    KBC Bank NV (Belgium) – buying Vertical Lend
    KKR Financial Holdings –no longer intends to invest in residential real estate
    Lancaster Mortgage Bankers – closed
    Lender’s Direct Capital Corporation – closed wholesale lending operations
    Lending group Inc. – suspended operations
    LendingTree – 20% of workforce laid off (fresh ones on Aug. 17)
    Loancity – closed 7 branches, shut down
    Loans 123 – no longer taking anymore business
    Lone Star – facing lawsuit over purchase of Accredited Home Lenders
    LowerMyPayment.com – closed, mortgage lead company
    Luminent Mortgage – two default notices, selling equity stake to Arco Capital Corp.
    Mandalay Mortgage – closed
    Maribella Mortgage – closed
    Master Financial – layoffs, ceased wholesale production
    Mercantile Mortgage – seized operations
    Metrocities Mortgage – layoffs
    MGIC – bought rival mortgage insurance provider Radian Group (pending)
    Mortgage Investment Lending Associates (MILA) – subprime wholesale lender shuts down
    Millenium Bankshares – closed mortgage division
    Millenium Funding Group – closed
    MLSG – halted lending operation
    Monarch Bank – buying mortgage-related assets from Resource Bank
    Mortgage Investment Lending Associates – closed
    Mortgage Lenders Network – stopped residential loan production
    Mylor Financial – closed
    National Home Equity – consolidated by National City Corp., suspended originations, layoffs
    Nationpoint – a subsidiary of Merill Lynch laid off 60 people on August 15, 2007
    Nation One Mortgage C0. Inc. – wholesale lender stopped origination and funding of mortgages
    Nationstar – acquired Champion Mortgage
    Netbank Funding – closed
    New Century – filed bankruptcy
    No Red Tape Mortgage – parent company Metrocities closed wholesale division
    Northern Rock (UK) – issued profit warning
    Novastar – closed wholesale unit, facing potentially huge lawsuit, laying off 37% of workforce
    Oak Street Mortgage – closed, files bankruptcy
    Opteum – closed conduit and wholesale operations
    Option One Mortgage Corp. – layoffs, pending sale to Cerberus Capital Management LP
    Own It Mortgage – closed
    Oxford Funding – acquiring Huntington Financial
    Pacific American Mortgage (PAMCO) – no new submissions, halted operations
    People’s Choice Financial Corp. – bankrupt
    People’s Mortgage – closed
    Popular Financial Holdings – exited the wholesale sub-prime mortgage market
    Premier Mortgage Funding, Inc – filed for bankruptcy
    Quick Loan Funding – layoffs, now reported closed
    QuoteMeARate.com Inc. – closed
    RAMS Home Loans (Australia) – warned of profit losses after only two weeks on stock market
    Residential Capital LLC – cutting roughly 1,000 jobs (GMAC company)
    ResMae – layoffs, bankrupt/for sale
    Resource Bank – selling mortgage-related assets to Monarch Bank
    Right Away Mortgage – closed
    RFC – layoffs
    Rose Mortgage Corp. – closed
    Saxon – layoffs
    Scottish RE – large subprime exposure drops stock into dangerzone
    Sea Breeze Mortgage Services, Inc. – Irvine, CA office phone disconnected, rumors of closure
    Sebring Capital Partners – closed
    Secured Funding – closed
    Shearson Financial Network – to acquire Dollar Mortgage Corp.
    Silver State Mortgage – closed
    Solutions Funding – closed
    Southstar Funding – closed
    Sovereign Bancorp – exited wholesale market
    Spectrum Financial Group – stopped funding loans, halted operations
    Starpointe Mortgage – closed
    Steward Financial – closed
    Stone Creek Funding – closed
    SouthStar Funding – closed
    Summit Mortgage – closed
    The Mortgage Warehouse – closed
    Thornburg Mortgage – 5 downgrades, need to sell some assets to stay afloat, denied BK
    Trojan Lending – ceased wholesale production
    Trump Mortgage – closing
    Unlimited Loan Resources – closed
    Velocity Commercial Capital, LLC – layoffs reported, still breaking
    Wachovia – closed Equibanc, layoffs
    Warehouse USA – closed
    Washington Mutual – layoffs, exited correspondent market
    Wells Fargo Alternative Lending Wholesale – closed, layoffs nationwide
    Winstar Mortgage – ceased operations
    WMC – GE’s subprime unit cut 460 jobs

    More at TheTruthAboutMortgage.com.

    You just read:

    The Long, Long List of Closed Mortgage Companies by Chris Beauchamp

9

    Scott 1631 days ago

    Please remove this list from your site…it is copyrighted material from The Truth About Mortgage.com

    mike 1631 days ago

    Scott,
    How can public information be copyrighted?
    It looks as though this post is an alphabetical list of closed mortgage companies. I am sure there are hundreds of lists just like this.
    I am far from a copyright attorney though.
    Fill me in.

    Scott 1631 days ago

    Yes most of it is public information, but it took a lot of time to investigate, organize, research, and consolidate that information in one place. And some of the information is in fact not public, nor found anywhere else. I am asking that you remove the list, or provide a snippet instead. I’m really not looking to argue, just asking that you please remove it or cut it down.

    lynne okeefe 1631 days ago

    what is thr status of Quicken Loans

    Tim Davis 1631 days ago

    Stick to your guns mike, This is public information and it didnt take alot of research it did how ever take the mortgage industry a long time to screw up the whole industry, with all the exotic loans so to speak the negative AMS and the interest only and god only knows what other kinds of mortgages and the creative gorilla math they used to get people loans on homes they couldnt afford to begin with I dont feel sorry for these insects for one moment. they crushed peoles home ownership dreams and just took the money and ran. This makes enron look like petty theft compared to the criminal acts these loan companies perpetrated on the american public. The feds really need to investigate and pass out some hefty prison time to those responsible.

    vl 1631 days ago

    Tim, so true. The general public doesn’t seem to understand- this industry is UNREGULATED!! And yes, this is public info. If any of you for one minute think anyone has your back; real estate agents, mortgage brokers, etc., you are solely mistaken. Everyone is looking for their cut!I have worked and been involved in this industry for 16 yrs. I have even had close, smart friends with yrs of experience in all areas of this field, who own wonderful companies actually give very bad advice.(sad, but true) Thankfully, I had enough sense to listen to my gut, most of the time. It takes a person only 6 short weeks to get their real estate license. Give me a break. And then they become the “expert”? WAKE UP! They are paying off their OWN mortgages.We are fools! It took a long time and a lot of greed to get here! They should be held accountable for their actions. Yes, I own homes and have never been in default or late payments.I also have my license! REGULATE!Protect ourselves. DO NOT USE METRO CITIES MORTGAGE Co.!! BAD-BAD-BAD!Scott-which one of these companies do YOU WORK for?

    Darlene 1631 days ago

    There is a company in Greater Cleveland that is actually GROWING and can use the sales skills of those who have lost their mortgage jobs. Through base + commission, our top agents make more than you think!

    Call (440) 325-2000 and ask for Diane and tell her where you saw this. Good luck!

    Latsryk 1631 days ago

    I agree with Tim & VI, I know so many people that are way over their heads with monthly payments especially here in California! With that said Does anyone know of a good honest reliable mortgage company that is still in business??

    Tim Davis 1631 days ago

    We are looking for mortgage agents that have worked for dishonest mortgage companies here in arizona that know thier is a better way of doing business the ethical way. If you would like to come work with us let me know. I’m here in scottsdale arizona and in need of good people with a great work ethic. call Tim 480-201-3842

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